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Scooped by Deb Nystrom, REVELN
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Changing Structures and Behaviors at Walgreens

Changing Structures and Behaviors at Walgreens | Change Management Resources | Scoop.it
When your strategy shifts, you may need to redesign your organization as well.


…We recognized that [our] command-and-control approach [was] outdated. ...We were missing the richness of empowering [our people] to come up with solutions on their own.



In the past, we had really strong policies and procedures, but our model didn’t allow for innovation or empowered customer service.


...Now, the way we do things is different. At the store level, we don’t want employees to simply complete tasks. We want them to come up with new ideas, and new ways of helping the customers.


This requires a big shift in leadership. Our model of the ideal executive has gone from an authoritative leader who could get new stores up and running fast, to an engaged leader who can hold people accountable, develop them, and manage them.


….A big part of the redesign was to help employees understand how this was different from what they did before.


…Under the new system, leaders are evaluated and bonuses are set according to three key critical areas: financial results, team member engagement, and customer service. There’s also a percentage that accounts for community engagement and events…and another component to accountability: managing under-performers.


There’s a huge change-management effort to make sure the initiatives are sustainable, and we’ve spent about US$30 million on training alone, with more to come. However, a year into the implementation phase, the results are promising. In our pilot program, we went from the bottom 25 percent to the 95th percentile in our engagement survey results.


The Gallup Organization, which measured the results for us, actually thought the numbers were wrong because they’d never seen such a big improvement in one year. We’ll have the next results after the full rollout in 2013.


Source:  http://www.strategy-business.com/article-full-preview/00195

Deb Nystrom, REVELN's insight:

The performance system cited here is individually based, still a bit traditional, yet Walgreens has made a huge leap from their by-the-numbers original growth only strategy.  It's a good case study of how a 240K member organization decided to implement enterprise and corporate strategy through tactical changes.  ~  Deb

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Why Traditional Business Transformation Don't Work, & A New Co-Creative Model - Innovation Playground

Why Traditional Business Transformation Don't Work, &  A New Co-Creative Model - Innovation Playground | Change Management Resources | Scoop.it

Over 60% of companies out there are operating from a dated business model. 20% are operating with a mental model that had expired more than 5 years ago.

Business transformation traditionally takes the form of unfreezing to refreezing and bridging the gaps in capabilities, mindset and performance.


The transformation model featured in this blog post by Idris Mootee has a strong future orientation, uses Design Thinking principles, and features a tangible, collaborative co-creation process.


A high-level view is captured by the following formula: Successful Brand-Driven Business Transformation = P+N+C+M+I+F


P = Develop a perspective of the future(s) informed by strategic foresights (both customer and technology contexts) and deep organizational insights;


N = Develop a co-created brand narrative that inspired people re: possibilities and purpose at the core of the story;


C = Develop a compelling case for the need for change developed and shared by all executives, investors, employees and B2B business partners;


M = Map - Develop a practical means to tie innovation (roadmap) and projects to the desired future(s);


I = Design an incentive systems that are aligned to identify and encourage appropriate behaviors compatible with the desired future;


F = Develop feedback mechanism for each stage of the process to monitor progress and provide input for continuous improvement.

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Case Studies on "Shared Services" Change Projects from Deloitte Consulting

Case Studies on "Shared Services" Change Projects from Deloitte Consulting | Change Management Resources | Scoop.it

"The shift toward shared services, as a means to cut costs and improve quality is well underway.  Case studies from Deloitte on 'Getting it together.'"


Here's a helpful resources page from the Deloitte folks that links to downloadable articles.


  • Theory:  " giving business units deeper support and let more people focus on what they do best.
  • In practice, it takes serious planning, coordination and hard work to realize those benefits."


Cases listed include:


Helping a large non-profit organization and its chapters embrace efficiency to do more good.

Features:

  • getting people throughout the organization to understand and embrace the changes. 
  • extensive training. 
  • tailored messages to stress the additional good people would be able to do if the organization were more efficient with its resources. 
  • pilot tests demonstrated this level of improvement was not only idealistic, but realistic
  • performed a feasibility assessment including practitioners from manufacturing operations, finance, strategy, technology, capital markets, organization and talent and total rewards service areas.

_______________________

One of the results:  more consistent medical benefits, increased employee participation and allowed for $12 million dollars in annual savings.
_______________________

  • improvements were designed and implemented including (example) offering more than 500 medical plans through more than 90 different providers, migrating all local health care plans to an enterprise-wide benefits program and creating a Center of Expertise benefits function integrated with human resources (HR) and payroll, to help simplify administration and reduce administrative resources, all while improving service levels. This approach generated more consistent medical benefits, increased employee participation and allowed for $12 million dollars in annual savings.

    

Insights:

  • How to establish and improve a shared services organization (SSO), based on the results of Deloitte’s 2011 global shared services survey results.

   

  • The other half of the shared services battle.

    

  • Sharing internal expertise.
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